Time to raise bets on Malaysia semiconductor stocks on expected ‘market-friendly' trade deal: UOBKH
In a Wednesday (Jul 2) report, the brokerage said it was time to raise bets on Malaysia with the expectations of favourable trade deals with the US.
'In anticipation of market-friendly US trade deals being struck and Malaysia retaining its onshoring destination status, our July 2025 picks raise the bet on semiconductor-related stocks, while still maintaining our emphasis on domestic infrastructure plays,' said UOB analysts.
Maybank on Jul 1 also predicted that Malaysia could shine in the next phase of global trade, with US tariffs on the country likely to stay at a lower band relative to other nations.
UOB's top picks for July 2025 included engineering solutions provider Coraza, pharmaceutical company Duopharma Biotech, property player Eco World Development, Gamuda, Hume Cement Industries, semiconductor services provider IJM and digital services provider MY EG Services – all of which were assigned a 'buy' rating.
Semiconductor-related stocks to succeed in short-run
A 'softening stance' on the US' tariff demands should culminate in market-friendly US-Malaysia trade deals, UOBKH analysts said.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
'This expectation, together with strong anecdotal evidence of Malaysian electrical and electronics companies significantly clinching orders and order enquiries since the US' 90-day tariff pause in April, should trigger further near-term upside especially for semiconductor-related stocks,' UOBKH analysts said.
These semiconductor-related players should get near-term wins before potential profit taking and ahead of forex-related challenges in the upcoming quarterly results season in June and July, they added.
One new addition to the brokerage's list of top picks, semiconductor-related laggard Coraza, logged consistent year-on-year revenue improvements across the past four quarters, said UOBKH analyst Desmond Chong.
He highlighted the company's 'solid' order momentum, as its current outstanding orderbook is at RM80 million (S$24.1 million) – 10 per cent above the previous quarter's quantum, with the bulk of orders coming from the semiconductor industry.
The company is investing in higher and more sophisticated equipment to cater to the needs of its customers, Chong said. Upgrades for a newly acquired plant opposite its existing Nibong Tebal plant are on track, while another new factory adjacent to the plant is set to become operational in the fourth quarter of 2025.
The timeline given for Coraza was six to nine months with a target price of RM0.66.
Inari, a company involved in semiconductor assembly, is another new addition to UOBKH's top picks.
The brokerage lifted its target price upwards to RM2.36 from RM1.90, and assigned it a six to nine-month timeline.
While the group's share price dropped 34 per cent in the year to date, Chong noted that its radio frequency segment sustained a 'relatively healthy' utilisation rate of 65 to 70 per cent.
Inari is poised to commercialise on new product pipelines in upcoming quarters, with its 2025 growth to be driven largely by its flagship radio frequency business.
The group has also made recent forays into advanced packaging platforms such as flip-chip chip-scale packages and flip-chip ball grid arrays, Chong said.
'These technologies offer ultra-high performance, high memory bandwidth, and heterogeneous integration capabilities to cater to the increasing demand for cutting-edge semiconductor solutions in artificial intelligence, server, networking, smart devices and industrial applications,' he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
38 minutes ago
- Straits Times
China retaliates against EU ban with import restrictions on medical devices
Sign up now: Get ST's newsletters delivered to your inbox The EU said in June that it was barring Chinese companies from participating in EU public tenders for medical devices worth €60 billion or more per year. HONG KONG - China's finance ministry said on July 6 it was restricting government purchases of medical devices from the European Union (EU) that exceed 45 million yuan (S$7.98 million) in value, in retaliation to Brussels' own curbs last month. Tensions between Beijing and Brussels have been rising, with the EU imposing tariffs on China-built electric vehicles and Beijing slapping duties on imported brandy from the bloc. The EU said last month it was barring Chinese companies from participating in EU public tenders for medical devices worth €60 billion (S$90 billion) or more per year after concluding that EU firms were not given fair access in China. The measure announced by the European Commission was the first under the EU's International Procurement Instrument, which entered into force in 2022 and is designed to ensure reciprocal market access. China's countermeasures were expected after its commerce ministry flagged 'necessary steps' against the EU move late last month. 'Regrettably, despite China's goodwill and sincerity, the EU has insisted on going its own way, taking restrictive measures and building new protectionist barriers,' the commerce ministry said in a separate statement on July 6. 'Therefore, China has no choice but to adopt reciprocal restrictive measures.' Top stories Swipe. Select. Stay informed. Singapore First BTO project in Sembawang North to be offered in July launch Business High Court orders Instagram seller to pay Louis Vuitton $200,000 in damages over counterfeit goods Singapore MOH studying 18 proposals to integrate TCM into public healthcare Singapore TTSH to demolish century-old pavilion wards, keeping one as heritage marker Asia Malaysian commando dies during military diving exercise off Kuantan coast Singapore Overlooked 'glass child', the sibling of a special-needs kid Singapore Red Lions and naval divers join forces for Jump of Unity at NDP 2025 Singapore His world crashed when he got F9 in O-level Tamil but PropNex co-founder Ismail Gafoor beat the odds The EU delegation office in Beijing did not immediately respond to a request for comment. China will also restrict imports of medical devices from other countries that contain EU-made components worth more than 50 per cent of the contract value, the finance ministry said. The measures come into force on July 6. The commerce ministry said products from European companies in China were not affected. The world's second- and third-largest economies are due to hold a leaders' summit in China later in July. On July 4, China also announced duties of up to 34.9 per cent for five years on brandy originating in the EU , most of it cognac from France, after concluding an investigation largely believed to be a response to Europe's EV tariffs. Major cognac producers Pernod Ricard, LVMH and Remy Cointreau were spared from the levies, however, provided they sell at a minimum price, which China has not disclosed. REUTERS
Straits Times
an hour ago
- Straits Times
Rugby Premier League looks to revive Indian game through sevens league
Sign up now: Get ST's newsletters delivered to your inbox Chennai Bulls' Vaafauese Apelu Maliko and Hyderabad Blues' Manuel Moreno during their match at the Rugby Premier League in Mumbai, India. – Rugby is not normally associated with India, but a new sevens league was launched in June with the aim of reviving the gladiatorial sport in the country. The Rugby Premier League (RPL) has recruited top internationals from the World Sevens circuit to play alongside locals in six franchises under broadcast-friendly rule variations. Organisers aim to revive local rugby enough for India to qualify for the Olympics while revolutionising the global future of the game. 'Rugby in India is not so popular and not because it's not played – it's played in more than 250 districts in India and there's a lot of talent pool available – but because people have not seen it,' said Satyam Trivedi, chief executive of co-organisers GMR Sports. 'I'm sure with the league getting commercials, going on broadcast, and some of the finest athletes of the world coming and participating, the audiences will see it and the sport will catch up.' The launch of the RPL comes at a time when sevens, which took off after its inclusion for the 2016 Olympics, is facing challenges. Financial pressures have led to cutbacks in some programmes, with Ireland ending its men's programme and Britain's men's and women's going part-time at the end of July. Top stories Swipe. Select. Stay informed. Singapore First BTO project in Sembawang North to be offered in July launch Business High Court orders Instagram seller to pay Louis Vuitton $200,000 in damages over counterfeit goods Singapore MOH studying 18 proposals to integrate TCM into public healthcare Singapore TTSH to demolish century-old pavilion wards, keeping one as heritage marker Asia Malaysian commando dies during military diving exercise off Kuantan coast Singapore Overlooked 'glass child', the sibling of a special-needs kid Singapore Red Lions and naval divers join forces for Jump of Unity at NDP 2025 Singapore His world crashed when he got F9 in O-level Tamil but PropNex co-founder Ismail Gafoor beat the odds Unlike World Sevens tournaments, organised on national lines, each RPL squad features five top-level 'marquee' players, five from India, and three more internationals, dubbed 'bridge' players. Scott Curry, who played 321 times for New Zealand's All Blacks sevens team and represents the Bengaluru Bravehearts in the RPL, believes the franchise model could be a peek into the sport's global future. 'The World Series has been changing a lot and there's a little bit of uncertainty there but to see something like this, a franchise league... I think it could be the future of the game going forward for sure,' he said. 'Having franchises where players from all over the world can come and play together along with local Indian players is really exciting for our sport.' Rugby India is another co-organiser of the RPL and its president Rahul Bose senses a major opportunity to get the eyes of 1.4 billion people on the game through the country's potential bid for the 2036 Olympics. Spaniard Manuel Moreno, who was named in the World Sevens series dream team last season and has been playing for the Hyderabad Heroes in the RPL, thinks India might not have to wait as long as 2036 given the Olympics has regional qualifiers. 'They (India) can do it in the next Olympic cycle. There are only two or three big teams in Asia. So I think they have a real possibility to be in the Los Angeles Games in 2028,' he said. REUTERS
Business Times
an hour ago
- Business Times
Japan's US$1.7 trillion fund boosts ESG holdings as others flee
[TOKYO] Japan's US$1.7 trillion Government Pension Investment Fund (GPIF) has added to its environmental, social, and governance (ESG) investments, rejecting the shift away from green strategies by many global asset managers. GPIF held about 18.2 trillion yen (S$160.5 billion) of assets tracking ESG indexes at the end of March – or 14.7 per cent of the fund's equity investments – up from 17.8 trillion yen a year earlier, according to documents published on Friday (Jul 4). The fund posted a quarterly loss on a declining dollar and weaker domestic assets. ESG funds have experienced record outflows as many investors shun a strategy that has been plagued by lacklustre returns, regulatory fatigue and political backlash, particularly from President Donald Trump's administration in the United States. GPIF and Norway's US$1.9 trillion sovereign wealth fund are seen as rare examples of major investors that are continuing to support sustainability-related securities. Japan has a positive outlook for ESG investments through the rest of the year, supported by GPIF's plans to continue to add green holdings and a push by the Tokyo Stock Exchange to overhaul corporate governance, according to Bloomberg Intelligence. BLOOMBERG
